The military council has announced the implementation of the Myanmar QR (MMQR) digital payment system, which will eliminate the need to print billions of kyats in physical currency. This system will be used for everything from budget deficit management to paying salaries of government employees under the military council and state project expenses. Although the system was initially prepared during the National League for Democracy government, the military council pushed for rapid implementation in June 2024, with Min Aung Hlaing personally launching it on February 27.
According to the military council’s central bank regulations, person-to-person transactions are limited to 1 million kyats per transaction and 5 million kyats per day. For payments from individuals to merchants including gold shops, electronics stores, construction material shops, and healthcare centers, the daily limit is set at 10 million kyats. Mobile money accounts can hold a maximum balance of 10 million kyats, with any excess requiring daily transfer to bank accounts. The military council plans to implement digital salary payments for 34 ministries and staff in Yangon, Mandalay, and Naypyidaw by August 2024, with private banks and military-backed financial service providers being granted operating licenses.
Than Than Swe, the military council’s central bank chairperson, stated that the system aims to reduce cash handling within the country, increase digital payments, and facilitate trade, investment, tourism, and international remittance transactions. The system will be used for various economic activities including tax payments, utility bills, tourism services, civil servant salaries, pension disbursements, small businesses, fuel stations, private hospitals, schools, and consumer goods sales. The military council has already begun implementing digital salary payments in government offices, claiming successful pilot projects with monthly digital transactions exceeding 9 billion kyats.
